Your company’s success is based on its ability to perform well. But how can you be sure you’re performing as well as possible? Benchmarking compares your company’s performance against that of others in your industry or sector.
If your company transitioned to working remotely, you must also use digital workplace benchmarking tools to ensure you’re still on track.
Regardless if you’ve shifted to a digital workplace or not, here are some essential tips for benchmarking your company’s performance:
Know Your Goals
Understanding your goals is the most vital step in any benchmarking process. You need to know what you hope to achieve by benchmarking your company’s performance. Do you want to improve efficiency? Increase profits? Measure customer satisfaction? After learning your goals, you can start looking for ways to achieve them.
Find Relevant Data Points
There are endless data points that you could collect about your company’s performance. But not all of them will be relevant to your goals. When collecting data, make sure it’s specific and actionable, or you will end up with too many numbers that don’t mean anything.
Look at Financial Ratios
A Financial ratio is a great way to measure your company’s performance. They compare different aspects of your company’s financial health, such as debt to equity or earnings per share. You can find these ratios in annual reports or other financial documents.
Compare Customer Satisfaction Scores
Among the best ways to measure your company’s success is by looking at customer satisfaction scores. You can find these scores in surveys or feedback forms. Comparing your company’s score against others in your industry can give you a good idea of how you’re performing.
Track Employee Engagement Levels
Employee engagement is a key factor in determining your company’s success. By tracking employee engagement levels, you can identify areas where your employees are engaged and those where they need improvement. You can use tools like surveys or social media monitoring to track employee engagement.
Compare Operational Metrics
Operational metrics can give you a good idea of how efficient your company is. If you track things like customer acquisition costs, employee turnover, and product defects, you can start to see where you need to make improvements.
You can find benchmarking data for operational metrics from research firms or industry associations. You can also compare your own company’s data over time to see if you’re making progress.
Use Benchmarking Tools
A few different software tools can help with the benchmarking process. These tools can automate some steps, like collecting data and calculating ratios.
Some popular benchmarking tools include Birst, Tableau, and IBM Cognos. Other free options, like Google Sheets and Microsoft Excel, are also available.
If you’ve shifted to a digital workplace, you should implement an effective digital workplace program in the first place before measuring your progress.
Join an Industry Association
It’s always best to join an industry association to connect with other companies and compare benchmarking data. Many associations collect data from member companies and publish reports on various topics.
You can also use the association’s website or forums to ask questions and get feedback from other members.
Hire a Consultant
If you want more help with the benchmarking process, you can hire a reputable consultant like Digital Workplace Group. These professionals can assess your company’s performance and help you develop strategies for improvement.
Look for consultants with experience in your industry or who specializes in benchmarking. You can find these professionals through research firms, industry associations, or online directories.
Attend Industry Events
Attend industry events to learn about benchmarking and connect with other professionals. Many events offer sessions on benchmarking, from data collection to interpretation.
Read Industry Reports
Reading industry reports is an excellent way to stay up-to-date on benchmarking data. These reports are usually published by research firms or trade associations. They often include data on various industries, so you can find ones that are relevant to your business.
You can usually find industry reports online or through subscription services.
Talk to Other Businesses
Another great way to get benchmarking data is by talking to other businesses. This can be done informally or through formal surveys.
If you talk to businesses in your industry, you can compare ratios and performance metrics. You can also ask about their strategies for success and how they’ve overcome challenges. This process can help you identify opportunities and areas for improvement.
